Higher prices ahead. QQQ should test and break $300 over the next few days.
Dumb and smart money will embed in overbought and oversold conditions for months before a major top. We have plenty of time to go into early next spring.
Tonight we want to examine big picture trends to ease some anxiety members have going into the election. The Fed has trillions invested into this resurrection of the global economy and they are not about to stop and walk away. A 3-6 month downturn may begin in metals and stocks between next April and May into Jan 2022. If you are using options, make sure you have enough time out into late spring of 2021. If you are in stocks or ETF's, time will correct any poor entry if the market throws us a curve ball. We expect volatility 2 weeks prior to the US elections. A short term top should be in place no later than next week, followed by consolidation into November 4th. A strong, multi-day relief rally post election is expected followed by a sharp drop on political election court battles. We expect the major indexes to close the year near all-time highs.
Gold has a shiny future into early next spring.
We purchased longer term June SLV calls because silver will outperform most likely any commodity into next spring. It has a growing industrial need coupled with a rising investment value.
Metals may suffer a stronger downturn than stocks into the election after a peak next week. A higher low is projected from the September 24th low, but we cannot rule out a double bottom in gold and a slight undercut in silver. We pointed out that Goldman had a strong buy recommendation to private clients recently regarding Natural Gas. A major component was due to the pandemic which will drive people to spend more time indoors this Winter at home, using more natural gas.
Expect a violent rally once Virgin breaks out of this consolidation.
The same move is coming for DENN near term.
Risk assets are set to fly into next spring as the dollar is devalued and more stimulus is created.
Financial Disclosures All opinions, information and illustrations expressed are solely for information and educational purposes and do not constitute investment or trading advice. We bear no responsibility for any actions taken or not taken by third parties after reading the blog. This email content has no regard to your own investment objectives, financial situation or particular needs. We may have an interest and may make purchases, sales or short sales in the securities referred to in the financial educational platform blog. Please ask for our consent before re-publishing blog content. Investing in the financial markets can involve considerable risk, including loss of principal. Past performance is not necessarily an indication of future performance. Actual clients may achieve results materially different from the results portrayed. All material is for informational and educational purposes only and is not investment advice and is not meant to suggest that any securities are suitable investments for any particular investor. All information reflects our own actions, beliefs, and processes for purely informational purposes. Hedge Fund Z LLC is a financial blog for the sole purpose of information. HFZ does not represent themselves as acting in the position of an investment advisor or investment manager for funds that are not under their direct control and fiduciary responsibility. Third party quotes and information may not be representative of the experience of HFZ customers and do not represent a guarantee of future performance or success. Many of the results displayed on our website were achieved using leverage, such as 2x or 3x leveraged ETF's or equity options. The information included at HFZ and HFZ writing, research, and updates is prepared for educational purposes and is not a solicitation, or an offer to buy or sell any security or use any particular system. Information is based on historical research using data believed to be reliable, but there is no guarantee as to its accuracy. HFZ does not represent themselves as acting in the position of an investment adviser, bank or investment manager for funds that are not under their direct control and fiduciary responsibility. HFZ will not provide you with personally tailored advice concerning the nature, potential, value or suitability of any particular security, portfolio or securities, transaction, investment strategy or other matter. No information, nor any opinion expressed on the Site or in the Services, shall constitute a solicitation or an offer to buy or sell any securities mentioned therein. The information presented on the Site and in the Services has been prepared without regard to any particular investor's investment objectives, financial situation, needs, capacity, and trading ability or experience. Accordingly, you should not act on any information on the Site or in the Services without obtaining specific advice from your financial advisors and should not rely on information herein as the basis for your trading and/or investment decisions. HFZ cannot claim or represent that any of our Services are suitable for you. By your use of the Site and Services, you're agreeing that you bear responsibility for your own investment research, trades, and investment decisions. Only you can decide whether or not a trade is right for you and you agree to be liable for any trades you initiate at your brokerage using research and/or tools that we provide. If you ignore our advice to do independent research and choose instead to trade solely on information, analysis, alerts or opinions found in our Service or website, you have made a conscious, willing, free, and personal decision to do so. You also agree that HFZ, its directors, its employees, subsidiaries, affiliates, and its agents will not be liable for any investment decision, trade made or action taken by you and others based on news, information, opinion, or any other material published through our Site and Services. Hedge Fund Z Terms and Conditions